Figma Inc (NYSE:FIG) shares are falling in extended trading Wednesday after the company reported financial results for the second quarter.

• Figma stock is taking a hit today. What’s weighing on FIG shares?

Figma Q2 Highlights

Figma reported second-quarter revenue of $370.08 million, beating estimates of $351.56 million, per Benzinga Pro. The collaborative web-based software company reported adjusted earnings of eight cents per share, beating estimates of four cents per share.

Total revenue was up 48% year-over-year. Figma generated $60.9 million of net cash from operations and $53.2 million of free cash flow during the quarter.

“Q2 was Figma’s third straight quarter of accelerated revenue growth, and as code gets commoditized and value moves up the stack, the opportunity ahead of us has only grown,” said Dylan Field, CEO of Figma.

Figma had 15,964 paid customers with more than $10,000 in ARR and 1,635 paid customers with more than $100,000 in ARR as of June 30.

Figma said it expects third-quarter revenue to be in the range of $373 million to $375 million versus estimates of $364.87 million. The company also raised its full-year revenue outlook from a range of $1.422 billion to $1.428 billion to a new range of $1.463 billion to $1.467 billion, versus estimates of $1.437 billion.

“Net Dollar Retention Rate remained strong at 136% as customers expanded both seats and AI credit add-ons. The strength of these signals gives us the confidence to raise our full year revenue outlook while continuing to invest behind the products we introduced at Config,” said Praveer Melwani, CFO of Figma.

Figma executives will further discuss the quarter on an earnings call set for 5 p.m. ET.

FIG Shares Face Heavy Selling Pressure

FIG Price Action: Figma shares were down 16.52% in after-hours Wednesday, trading at $23.50 at the time of publication, according to Benzinga Pro.

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